CITY COUNCIL STAFF REPORT
DATE: JANUARY 28, 2026 CONSENT CALENDAR
SUBJECT: AWARD OF A CONSTRUCTION CONTRACT TO ZECO, INC., A CALIFORNIA CORPORATION, IN THE AMOUNT OF $6,490,150.31;
APPROVAL OF A TASK ORDER UNDER AN ON-CALL AGREEMENT
FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES
WITH DUDEK & ASSOCIATES, INC. IN THE AMOUNT OF $399,450;
APPROVAL OF A TASK ORDER UNDER AN ON-CALL AGREEMENT
FOR COMMUNITY WORKFORCE AGREEMENT ADMINISTRATION
WITH TSG ENTERPRISES, INC., DBA THE SOLIS GROUP, IN THE AMOUNT OF $24,200; AND APPROVE A CULTURAL MONITORING
AGREEMENT WITH THE AGUA CALIENTE BAND OF CAHUILLA
INDIANS FOR A NOT-TO-EXCEED AMOUNT OF $50,000, FOR THE
DEMUTH PARK DEVELOPMENT PROJECT, CITY PROJECT 21-16
FROM: Scott C. Stiles, City Manager
BY: Engineering Services
SUMMARY:
Upon awarding this contract, and approval of the task orders and agreement, the City will be authorized to proceed with the construction of the Demuth Park Development, City Project 21-16.
RECOMMENDATION:
1. Award a construction contract to Zeco, Inc., in the amount of $6,490,150.31 for the Demuth Park Development Project, City Project No. 21-16 (“the Project”);
2. Delegate authority to the City Manager or designee to approve and execute construction contract change orders up to a total amount of $600,000 with all change orders reported and filed to the City Council;
3. Authorize the City Manager to approve a task order for project management and inspection services with Dudek & Associates, in an amount of $399,450;
4. Authorize the City Manager to approve a task order for Community Workforce Agreement administration services from an on-call CWA firm, TSG Enterprises, Inc., The Solis Group, in an amount of $24,200;
City Council Staff Report
January 28, 2026 -- Page 2
Construction Award for Demuth Park Development, City Project 21-16 7 1
4 5. Authorize the City Manager to enter into an agreement with the Agua Caliente Band of Cahuilla Indians for Cultural Monitoring for a not to exceed amount of $50,000, once the language in the final agreement is approved by the City Attorney; and
6. Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
The Public Integrity Disclosure forms for Zeco, Inc. (Zeco), Dudek & Associates (Dudek), and The Solis Group (TSG) are included as Attachment A.
BACKGROUND:
Demuth Park is a highly utilized public park located at 3601 E. Mesquite Avenue, Palm Springs, with various recreational amenities including a community center, playgrounds, restrooms, athletic courts and fields, picnic areas, parking lot areas, and two temporary dog park areas.
The City of Palm Springs is proposing to make a series of site improvements to enhance Demuth Park for the community, improving its function and overall usability. The Project improvements include design of a permanent large dog park with ADA parking spaces, a small dog park, conversion of an existing 2.2-acre dirt lot into a 165-stall paved parking lot with drainage improvements, pavement of the Community Center parking lot, pavement and drainage repairs at the Little League parking lots, installation of ADA drinking fountains, and sidewalk and pathway restoration.
On August 16, 2022, the Parks & Recreation Department received notification that the City was awarded a Land and Water Conservation Fund (LWCF) grant to assist in the construction of the two Demuth dog parks and parking area components of the Project in the amount of $1,650,250. Grant requirements state that the City of Palm Springs must match the grant amount. The City has also allocated funding from Measure J for a new 5-stall unisex restroom, sidewalk restoration to meet ADA requirements, and replacement of drinking fountains to ADA requirements.
On July 5, 2023, Procurement and Contracting Staff issued a Request for Proposals (RFP) for Professional Design Services to solicit proposals from qualified engineering firms who specialize in these types of services. Kimley-Horn and Associates, Inc. (Kimley- Horn) was deemed qualified to complete the work and a Professional Services Agreement was awarded by City Council. Shortly thereafter, design work commenced and was ultimately completed by the end of October 2025. The Project site vicinity map is shown as Figure 1.
City Council Staff Report
January 28, 2026 -- Page 3
Construction Award for Demuth Park Development, City Project 21-16 7 1
4 Figure 1
Bid Schedule Breakdown
The Project was broken down into three (3) different bid schedules with each schedule combining similar scopes of work. The Project was broken up this way in the event Staff needed to cut the scope of work down so that the Project stayed within budget and within the grant requirements. In general, the following scope of work per Bid Schedule is comprised of:
A – Dog parks and accommodating parking lot installations. B – New restroom building and drinking fountain installations. C – Existing parking lot drainage repairs.
Bid Schedule A is the basis for the award of the project.
STAFF ANALYSIS:
On December 22, 2025, the Engineering Services Department received the following seven (7) construction bids as shown in Table 1, with Bid Schedule A being the basis of award due to the LWCF Grant:
City Council Staff Report
January 28, 2026 -- Page 4
Construction Award for Demuth Park Development, City Project 21-16 7 1
4 Table 1 – Basis of Award Results
No Company Location Bid Amount
1 Zeco, Inc. Yorba Linda, CA $4,550,034.61
2 Ramirez Company Azusa, CA $4,741,960.89
3 MBD General Engineering, Inc. San Diego, CA $4,852,516.00 4 Deark E&C, Inc. Fullerton, CA $4,906,001.00
5 Nationwide Contracting Services Huntington Beach, CA $4,942,729.00 6 PUB Construction Inc. Diamond Bar, CA $5,690,273.86
7 Woodcliff Corporation Los Angeles, CA $7,439,979.00
The lowest responsive bid was provided by Zeco, Inc. (Zeco) in the amount of $4,550,034.61. Since there are sufficient funds in the Project account, Bid Schedules B & C will also be included, for a total award amount of $6,490,150.31.
Project Labor Agreement (PLA)
This Project is subject to the City’s Community Workforce Agreement dated August 31, 2021, which is on file with the City Clerk. The Contractor and all Subcontractors of any tier are to include contractual provisions in all contracts into which they enter for the performance of the work requiring the Contractor and all Subcontractors to comply with the provisions of the PLA prior to the commencement of work and at no additional cost.
Local Business Preference Compliance
Section 7.09.030 of the Palm Springs Municipal Code (“PSMC”), “Local Business Preference Program”, requires prime contractors to use good faith efforts to sub-contract the supply of materials and equipment to local business enterprises and to sub-contract services to businesses whose workforce resides within the Coachella Valley. Zeco is not considered a local business but has demonstrated sufficient evidence of good faith efforts to subcontract the supply of materials to local businesses.
Bid Analysis
The bid documents submitted were reviewed and it was determined that Zeco complied with the instructions to bidders and submitted the lowest responsive and responsible bid at $6,490,150.31. Staff recommends the City Council award a construction contract to Zeco. The proposed agreement is included as Attachment B and Construction Bid Documents are included as Attachment C.
Construction Management Services
Staff requested a proposal for Construction Management (CM) and Inspection services to one of their on-call CM firms. The on-call CM Firm RFP was written to ensure that the selected firm demonstrated successful experience and capacity to provide construction management with inspection services required by the City. Dudek provided a proposal in City Council Staff Report
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Construction Award for Demuth Park Development, City Project 21-16 7 1
4 City Council Staff Report
January 28, 2026 -- Page 5
Construction Award for Demuth Park Development, City Project 21-16 7 1
4 the amount of $399,450. Staff recommends the City Council approve a task order under On-Call Agreement 25Q158 with Dudek, Inc., not to exceed $399,450.
Community Workforce Agreement Administration
Staff requested a proposal from our on-call Community Workforce Administration Services firm, TSG Enterprises, Inc., dba The Solis Group (“TSG”). Staff recommends the City Council approve a task order under On-Call Agreement 23P041 with TSG not to exceed $24,200.
ENVIRONMENTAL ASSESSMENT:
In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section 15301(c) “Existing Facilities”, Class 1 projects consist of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Therefore, Staff has determined that the Demuth Park Development Project, City Project 21-16, is considered categorically exempt from CEQA and a Notice of Exemption has been filed with the Riverside County Clerk.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Infrastructure and Facilities.
FISCAL IMPACT:
The total budget available for this Project is $8,258,959, which is comprised of a Grant, Measure J Funds, Capital Funds, and Quimby Funds. There is sufficient funding available to award a construction contract, both task orders, a tribal monitoring agreement, and contingency for a project total amount of $7,563,800.31.
REVIEWED BY:
City Engineer: Joel Montalvo
Director of Parks & Recreation: Nicholas S. Gonzalez
Director of Finance & Treasurer: Kristopher Mooney
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
City Council Staff Report
January 28, 2026 -- Page 5
Construction Award for Demuth Park Development, City Project 21-16 7 1
4 City Council Staff Report
January 28, 2026 -- Page 6
Construction Award for Demuth Park Development, City Project 21-16 7 1
4 ATTACHMENTS:
A. Public Integrity Disclosure
B. Construction Agreement
C. Contractors Bid Documents